CITIC Bank Fined for Leaking Personal Information, Receives Frequent Fines for Multiple Violations

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After 10 months, the results of the investigation into mainland stand-up comedian Chi Zi’s complaint against CITIC Bank for unauthorized disclosure of his sensitive personal information have been released, and the joint-stock bank, which is owned by a central CCP company, has been fined 4.5 million yuan by the CBRC, which has been violating the law for years and received huge fines.

On March 19, CCP Banking and Insurance Regulatory Commission issued a public table of administrative penalties against CITIC Bank, which was fined 4.5 million yuan (RMB) for its major violations of law, all of which pointed to the collection and protection of customer information. The date of making the penalty decision is March 17, 2021.

In May last year, stand-up comedian Chi Zi posted on Weibo that CITIC Bank Shanghai Hongkou Branch had provided his personal account flow to Shanghai Xiaoguo Culture Media Co.

Chi Zi believes that this action by CITIC Bank violated his own rights and interests, and he sent a letter through his lawyer demanding that CITIC Bank and Xiaoguo Culture pay damages and publicly apologize.

In response to Chi Zi’s report, CITIC Bank had publicly issued an apology letter on its official Weibo, saying that the bank had disciplined the employees concerned and removed the branch chief from his post. Once the internal penalties were announced, they once again aroused widespread concern from all walks of life. Some netizens questioned that CITIC Bank’s penalty was not strong enough.

China CITIC Bank, the seventh largest bank in mainland China, has a major shareholder in China CITIC Group Corporation (a central enterprise of the CCP).

This is not the first time CITIC Bank has received a fine. Upon inquiry, it was found that the bank has received fines amounting to more than $20 million for several years in a row since 2018.

In November 2018, CITIC Bank was fined RMB 22.8 million for six crimes, including illegal payment of land for wealth management funds and financing of wealth management products with the Bank’s credit funds.

In July 2019, CITIC Bank was fined RMB 22,236,677,000 for thirteen violations involving failure to provide required statements and overdue corrections, inadequate post-loan management leading to misappropriation of loan funds, and inconsistent use of risk weights for investments in contemporaneous non-principal-protected wealth management products of the same banking institution.

In February 2020, CITIC Bank had been fined RMB20.2 million for nineteen violations including issuing land reserve loans in violation of regulations, making fiduciary payments that did not comply with regulatory requirements, and providing financing to real estate enterprises for payment of land acquisition costs in violation of regulations.

Just last month, on the 5th, the Central Bank of the CCP issued the first fine: CITIC Bank was fined 28.9 million yuan for violating anti-money laundering regulations. According to statistics from the mainland media, CITIC Bank has been fined a total of more than 41 million yuan this year.

In addition, Sun Deshun, the president of CITIC Bank, was filed for investigation by the authorities in March last year. In September of the same year, Chen Xu Ying (female), a former vice president of CITIC Bank, was sentenced to 15 years in prison in the first instance for accepting bribes. Chen Xu Ying is being investigated for his involvement in a loan violation case involving Bao Xueqin, a former vice president of CITIC Trust.

Source: Epoch Times

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